Market regulator SEBI on Wednesday slapped Rs 5 lakh on a stock broker, Rajendra Prasad Shah, for allegedly indulging in fraudulent trading as well as violating brokers norm.
According to the capital markets watchdog, Mr. Shah indulged in cross trades/ synchronized trades in such a manner that led to creation of artificial volume in the shares of G.K. Consultants Ltd between October 2004 and September 2005.
Mr. Shah, being a stock broker beside indulging into synchronised and cross trades, had also “failed to exercise due skill, care and diligence and not maintained high standards of integrity, promptitude, fairness in the conduct of business as a stock broker.”
Accordingly, Securities and Exchange Board of India (SEBI) has imposed a total penalty of Rs 5 lakh upon on the noticee/Shah.
In a separate order, SEBI has levied a fine of Rs 3 lakh on SKS Ltd for allegedly failing to obtain registration with its online complaint system as well as not resolving pending investor grievances.
As on today, SEBI said that there are three complaints pending against SKS and has not obtained authentication from SCORES.
In 2012, SEBI had directed all listed companies to get SCORES authentication by September 14 of the same year, failing which they would have to face enforcement action.
SCORES, launched by SEBI in June 2011, provides a centralised database of all complaints.
